Taper Landed research report of Huobi declares the end of the S2F model. The author of the report predicted that this model will fail due to its limited consideration of economic factors surrounding the flagship currency.
The Bitcoin model stack to flow (S2F) uses the availability and production of the coin in the market to predict the price. This model is built by the famous Plan B, the same person which predicted that BTC will hit the price mark of $98k in November and then $135k in the last month of this year. The first prediction by Plan B of $98k has failed and the current price of BTC isn’t showing any sign of crossing the $135k mark by the end of this month.
Taper Landed research report of Huobi:
The investigative arm of the Asian exchange, Huobi, has presented a well-researched report which paints a bleak picture of the crypto market. The report has predicted how the recent changes in the United States can impact the market. The title of the report is “Taper Landed: The Turning Point of Cryptocurrency Market is Coming”. The author of the report has predicted that famous S2F will end because it isn’t considering macro changes in the market. The author said:
Why does the “victorious” bitcoin S2F model suddenly fail? Because Plan B only considered the monthly SF ratio of bitcoin and historical bitcoin price data when constructing the model, but ignored the impact of external macro changes on the market.
Lee further explains that the growth in bitcoin’s price has to do with the loosening of economic policies that the U.S. and other governments undertook, ostensibly to save the market during the coronavirus pandemic. Taper Landed research report concluded that if the taper process accelerates then it could be felt more quickly on the market.
Read more here.